The labour supply of nurses in the UK: evidence from the British Household Panel Survey

Nigel Rice

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: This paper investigates the determinants of the labour supply of nurses in the UK. Attention focuses on the elasticity of hours of work supplied with respect to wage rates. This is achieved using nine waves of data from the British Household Panel Survey. The panel nature of this survey allows us to control for individual unobserved heterogeneity thus reducing the problems encountered in models of labour supply caused by omitted variable bias. We account for the endogenous nature of wages by using 2- stage least squares. Tests for and control of selection bias are achieved using methods based on variable addition tests for panel data. We find that the elasticity of hours supplied with respect to wage is 0.40 suggesting that moderate increases in nurse hours supplied could be achieved by increases in wage rates.

Keywords: Nurses; Labour supply; Wages; Panel data. (search for similar items in EconPapers)
JEL-codes: C1 I1 (search for similar items in EconPapers)
Date: 2005-10
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:05/10

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